By Seun Ibiyemi
Wema Bank Plc has reported a profit before tax of N221.8 billion in its audited financial results for the 2025 financial year, representing a 116.44 per cent increase compared to N102.5 billion recorded in 2024.
The audited figure is slightly lower than the previously released unaudited profit of N222 billion, reflecting marginal adjustments after final review.
The bank’s strong performance was largely driven by a significant rise in interest income, which climbed to N576 billion from N354.6 billion in the previous year.
Loans and advances accounted for 60.4 per cent of the interest income, while investment securities contributed 35.5 per cent, with cash and cash equivalents making up the balance.
Further analysis of the bank’s earnings showed that interest income comprised N348.2 billion from loans and advances, N204.4 billion from investment securities, and N23.3 billion from cash holdings.
Interest expenses also increased by 21.13 per cent to N215 billion, resulting in a net interest income of N360.9 billion.
After accounting for impairment charges of N25.6 billion, net interest income stood at N335.2 billion, more than double the N155.4 billion recorded in 2024.
Non-interest income also supported the bank’s earnings growth, with net fee and commission income rising to N75.5 billion from N55.5 billion.
Net gains on fair value investment securities stood at N993.2 million, while trading income contributed N8.3 billion, alongside N392.5 million from other income sources.
As a result, total operating income rose significantly to N420.6 billion, compared to N234.2 billion in the previous year.
Operating expenses increased to N198.7 billion, but the growth in revenue ensured a strong bottom line. Profit after tax came in at N194.4 billion after a tax expense of N27.4 billion.
Earnings per share also improved to N7.12, up from N4.83 in 2024, reflecting enhanced shareholder value.
On the balance sheet, total assets expanded to N5.07 trillion from N3.5 trillion, driven largely by growth in loans and advances to customers, which stood at N1.7 trillion.
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Shareholders’ equity rose sharply to N620.4 billion from N256.4 billion, supported by retained earnings of N215 billion, representing a 108.3 per cent year-on-year increase.
Total liabilities increased to N4.4 trillion, with customer deposits accounting for N3.2 trillion.
Despite the strong financial performance, the bank’s shares have yet to show a significant immediate reaction on the Nigerian Exchange, although the stock has gained 28.43 per cent year-to-date, with trading volume reaching 1.9 billion units.
